INFRASTRUCTURE
TRANSPORT
Government realises that safe and efficient transportation
systems are vital to the nation's continued economic
development. It does not only play a key role in the nation’s
capacity to participate in the global economy, but also
crucial in ensuring the well being of its communities and
people. Government Policy Thrust is therefore directed at a
revitalised, modernised, dynamic and sustainable transport
sector through Public-Private Sector partnership.
Economic factors and national political considerations over
the years, has led to the dominance of the public sector in
providing investible resources for development of the sector.
Thus, Government assumed responsibilities for the provision
of infrastructural facilities, allocation of financial resources,
institution of regulatory framework and operation and
provision of transport services.
Government intends to privatise the transportation sector in
line with the Transportation Master Plan without abdicating
its responsibility of retaining the core values of social goals,
which are not amenable to market forces. Government will
seek greater involvement of the private sector in
management and financing of transportation infrastructureair, railway, roads, ports, inland waterways.
The National Transport Policy, which gave rise to the
Transport Master Plan, adopts an inter-modal, integrated,
holistic, reinforcing and organic system of approach for the
development of the sector. The approach took into
consideration the needs of the people- considering that
about 85% of Nigerians live in the rural areas, the relevant
response to their needs would be a Mass Transit System for
example rail- and government is not shying away from this.
Opportunities therefore abound for investors who wish to
engage in mass transportation business in any of the modes
of transportation.
Nigeria's transportation network was potentially one of the
best in Africa, featuring an extensive system of paved
highways, railroads, airports, and ports
CAOSTAL,
INLAND
TRANSPORT
WATERWAYS
&
MARITIME
Maritime Services
i. Self-run Terminal
ii. Ultra-modern Multipurpose Bulk terminal
iii. Specialised Trans-shipment
iv. Management and Maintenance of cargo handling plants
equipment terminal on purely commercial basis
1. Ship acquisition/Procurement
2. Joint Venture with Nigerian indigenous shipping lines
3. Ship building and repairs.
Inland Water Ways Transport
i.
Investment in he rehabilitation and modernisation of
the National Inland Waterways Authority (NIWA)
dockyards in Warri and Lokoja.
ii.
Operation of ferries along the NIWA networks
connecting creeks and rivers
iii. Provision of navigational aids and communicational
equipment
iv. Purchase/Ownership
of
various
categories
of
operational vessels
Coastal and Inland Shipping
Nigeria is blessed with a coastline of about 870km and about
3,000 km of inland waterways. The country is equally
blessed with enormous natural resources which economic
value in terms of foreign earnings is directly related to the
maritime component. Oil & Gas sector is presently the
predominant sector in Nigeria short sea trade and is
estimated to constitute about 95% of coastal and inland
shipping while fishing trawlers and break bulk carriers make
up the remaining 5%. This presents enormous coastal trade
opportunities for shipping companies in Nigeria.
In order to develop this viable operation, the Coastal and
Inland Shipping (Cabotage) Act 2003 was enacted. The Act
is part of the deliberate drive by government to create
opportunities for increased Nigerian participation in all
sectors of the economy.
Port Services
The Nigerian Ports Authority (NPA) was established in 1984
to provide an integrated approach to national port
administration. The major ports in Nigeria are: Apapa & Tin
Can Island (Lagos State), Port Harcourt (Rivers State), Onne
(specialised port for oil & gas, Rivers State), Warri (Delta
State), Calabar (Cross River State), Roro (Rivers State).
The establishment of the rightful ownership of goods
received at the ports brings into focus a number of
procedures, documentation and the duty to safeguard the
consignments until they are delivered to the owners. In
consonance with its objectives, government has put in place,
the following reforms to achieve high productivity and userfriendly environment to attract traffic to the seaports:
 Replacement and modernisation of obsolete port handling
equipment: new cargo handling have been acquired and
installed at all ports;
 Review of port tariffs and charges: prevailing tariffs and
charges have been simplified to allow for flexibility and
competitiveness in the sub-region while its policy of no
charge for services not rendered is seriously being
pursued;
 Computerisation of port operations: inline with the reform
programme, all the ports are being computerised, with
that of Apapa and Roro ports completed. In effect, the
authority is sustaining its drive at ensuring clearance of
cargo within 48hours of arrival.
Inland Container Deports
In an effort to decongest major ports in the country, 5 (five)
inland container deports have been opened for operations.
These are situated in Kaduna (Kaduna State), Kano (Kano
State), Aba (Abia State), Jos (Plateau State) and Ifo (Ogun
State).
RAIL TRANSPORT
The Nigerian rail network spans through a total 3,798km
from Lagos in the south-west to Port Harcourt in the southsouth, up to Kano in the north central zones of the country.
This network service over 2.5million passengers and 1million
metric tonnes of fright annually. This network also covers
the Itakpe – Ajaokuta – Warri axis primarily servicing the
iron ore and steel plants. The existing rail network is being
proposed to be extended to Abuja and other industrial
corridors – Lagos – Abuja, Abuja – Kaduna, Minna – Abuja,
Aba – Uyo – Calabar East – West. Presently, the rail system
has 3362 wagons, 600 coaches and 170 locomotives.
The facilities available have proven to be inadequate. With a
view to enhancing its market value for eventual
privatisation, government is executing rehabilitation and
upgrading of old rail tracks, installation of modern electrical
and semi-automatic block signalling. Acquisition of modern
locomotive, coaches and wagon are also being pursued.
AVIATION
The Nigerian aviation industry enjoyed growth from the oil
boom period of the 1970s. During the period, the industry
metamorphosized into a multi-faceted, profit driven sector of
the national economy. There was tremendous growth in
number of operators, airports and passenger traffic.
However the industry witnessed serious decline due mainly
to growing cost, poor management, bad policies and
unfriendly investment environment.
The Nigerian Civil Aviation Policy was developed in 1999.
The policy was designed to promote the establishment of a
safe, efficient, reliable, dynamic, customer-focused, marketdriven, self-sustaining, high-tech industry, which would grow
at an average minimum rate of 7% per annum, thereby
making significant contribution to Nigeria’s GDP.
Nigeria is dotted with over 70 airports, five of which are
international and the others in the domestic category. The
five international airports are: Murtala Mohammed Airport
(Lagos), Nnamdi Azikiwe Airport (Abuja), Port Harcourt
Airport (Port Harcourt), Mallam Aminu Kano Airport (Kano)
and Enugu International Airport (Enugu).
With the deregulation of the domestic airline industry,
private sector initiative has intensified in the Nigerian civil
aviation industry. The stage is now set for a vibrant and
profitable aviation sector. Presently, there are over 29
airlines plying the domestic route in different service
categories ranging from charter cargo service, oil-support
service, charter passenger service and scheduled passenger
service. Some of these airlines are: Easy Link Aviation;
Chanchangi Airlines; Dormier Aviation Nigeria AIEP (DANA);
Pan African Airlines; Aero Contractors Nig. Ltd.; Overland;
Bristow Helicopters; Bellview Airlines; Skypower Express
Airways; Afrijet; Savannah Airlines; Premium Air Shuttle;
Associated Airlines; Chrome Air Service; Nigeria Airways;
Fresh Air Ltd.; and Kabo Air. Others include King Air and
Travels Ltd.; ADC Airlines Plc.; Wings Aviation; IRS Airlines;
DASAB Airlines, Earth Airlines; Sosoliso Airlines and EAS
Airlines. Others are Sky Executive Airlines, Falcon Airlines,
Freedom Air Services, Nexus Aviation and Virgin Nigeria.
This has resulted in intense competition among the key
airline operators in the industry, especially in the area of
value-added services, customer care and safety facilities
available.
Today, the Nigerian aviation industry needs improved
funding, and more investment in technology to give the
sector the capacity to profitably meet the needs of a fast
growing market and fit into the global aviation industry of
the 21st century. The new vista of democratic experience in
Nigeria has created an investors haven.
National Carrier
In line with government desires to make private sector
participation as the pivot of Nigerian’s economy reengineering, a fully private sector carrier had been named as
the official national carrier - Virgin Nigeria. Its inaugural
flight was to London via the Heathrow Airport on June 28,
2005.
Regulatory Agency
The Nigerian Civil Aviation Authority (NCAA), is responsible
for regulating the methods of entry and conduct of air
transport business, ensure the safety of aircraft operations,
monitor aircraft operating environment and play advisory
roles to the Aviation Ministry.
Airspace Management
The Nigerian Airspace Management Agency (NAMA), was
created vide Act No.48 of 1999 of the Federal Republic of
Nigeria, to develop the Nigerian Airspace to a level
consistent with the requirements of the ICAO Standards And
Recommended Practices (SARPS). The Agency therefore is
saddled with the provision of Air Traffic Management to
ensure a safe, efficient, expeditious and economic flight
operations.
In compliance with this mandate, the NAMA has set a vision
on making the Nigerian Airspace rank among the safest
airspaces in the Africa-Indian Ocean Region and indeed, the
world over.
Nigerian Airspace Management Agency’s implementation of
the roles contained in the Act (decree) establishing it is
guided by the following principles:
 Aircraft operating agencies and the flying public are our
primary customers and must be given the highest quality
service.
 Aviation equipment manufacturers and other related
agencies are those we rely on for our operational
equipment/services.
Bilateral Air Service Agreement (BASA)
Nigeria has signed Bilateral Air Services s Agreement (BASA)
with some friendly countries, while negotiation continues
with some others. The Agreement is to regulate the
operation of scheduled air services between and beyond
their respective terminals. Some of the countries that the
Agreement have been signed with are: United Arab Emirate,
Niger Republic, Kenya, Yemen, United Kingdom, the
Netherlands, and United States of America, among others.
The negotiation with the UK had led to the entrenchment of
the dual designation clause, which subsequently designated
Virgin International Airlines as the second UK carrier on the
London-Lagos route.
ENERGY
The overwhelming objective of the Electric Power Policy is to
ensure that Nigeria has an Electricity Power Supply Industry
(EPSI) that can meet the needs of its citizens in the 21st
Century. This will require a fundamental reform at all levels
of the industry. A technically and commercially efficient EPSI
is critical for achieving Nigeria 's growth and development
goals.
The priority is to create an efficient market structure with a
clear regulatory framework, that encourages more
competitive markets for electricity generation and sales
(marketing), which at the same time, is able to attract
private
investors
and
ensure
economically
sound
development of the system. The Private Sector Participation
(PSP) is being encouraged through the following legal
framework:
 Build-own-operate (BOO): The private agent retains
the ownership of the facility and the right to operate it
for an indefinite period of time.
 A similar arrangement is the Independent Power
Producer (IPP), under which the private sector sells
power to the government grid, without formal previous
obligation to limit its profit or eventually surrender
ownership of the facility.
 Build-operate-transfer (BOT): The private agent builds
the facility and retains ownership and the right to
exploit for a specified period of time, thus recovering
construction, operating, and financial expenditure. At
the end of the period, ownership reverts to the state at
a symbolic cost.
 Build-transfer-operate (BTO): The private agent
transfers ownership of the facility to the State after
completing the construction stage, and operates it
thereafter.
 Rehabilitate-operate transfer (ROT): Under this
arrangement, government has also gone into
negotiation with a number of private companies for the
repairs
and
expansion
of
dilapidated
power
infrastructure.
This structural reform has resulted in the execution of Power
Purchase Agreements (PPA) with some power producing and
energy companies such as:
i. Agip Nigeria Plc
ii. America Energy Services (AES) for 270MW
iii. Aggreko for 35MW Emergency Power
iv. Geometric Renatech LLC for 15MW Emergency power.
This will ensure that the Nigerian electricity sector meets
current and future electricity demands in an efficient and
economically viable manner. The involvement of the private
sector thus entails the need for adequate regulatory
framework for the industry. To achieve this, the erstwhile
National Electric Power Authority had been unbundled,
giving rise to a new enterprise named Power Holding
Company of Nigeria Plc (PHCN). The new structure has 11
(eleven) Distribution Business Units, 1 (one) Transmission
Company (TransysCo) and 6 (six) Generating Companies. All
these business units are semi-autonomous. The industry
regulatory body is also being formed.
Electricity Generating & Supply Capacity
Generation
The generating plants include hydroelectricity and thermal:
steam plant and open cycle gas turbines. Of about 6,000MW
installed capacity, the nation achieved and has sustained a
3,000MW generation since June 2002.
The installed capacity is as follows:
PHCN Facilities
5 Thermal Power Stations
3,672MW
3 Hydroelectric Power Stations
1,938 MW
Total Installed capacity
5,610MW
(From
8
generating stations)
IPPA Facilities
896MW (2004)
Transmission & Dispatch
Transmission Voltage levels
Twenty-five sub-stations
of 330Kv
Eighty-nine sub-stations of
132Kv
Length of Transmission Lines
5,000Km of 330Kv lines
6,000Km of 132Kv
lines
Total Transformer Capacity
Frequency Control Policy
Voltage Control policy
7,000 MVA
50Hz +/- 0.4%
330Kv +5% and –15%
132Kv +10% and –
15%
National Control Centre
Oshogbo,
Osun
State
Supplementary National Control Centre Shiroro, Niger State
Distribution
The network facilitates the distribution of power to the
industrial, commercial and residential consumers in Nigeria
and in neighbouring Niger Republic.
Distribution Voltage Levels:
Length of Distribution Lines
33KV, 11KV & 0.415KV
37,173 Km of 33Kv lines
29,055 Km of 11KV
lines
70,799 Km of 415V
lines
Total Transformer Capacity
Frequency Control
14,400 MVA
50Hz +/- 10%
Profile of Power Stations
Name of Station Commissi Installed
oned Date Capacity
(MW)
Kainji
Power 1968
760
Station
Jebba
Power 1985
587
Station
Shiroro
Power 1989
600
Station
Afam
Power 1963
972
Station
Number of Type
Generating
Units
8
Hydro station
6 x 95MW
Hydro station
4 x 150MW
Hydro station
20
Thermal
Station (gas
Egbin
Station
Power 1984
1,320
6 x 220MW
Delta
Station
Power 1966
600
20
Sapele
Station
Power 1978
600
20
Ijora
Station
Power 1920s
60
-
fired)
Thermal
Station
(Steam
turbine)
Thermal
Station (gas
fired)
Thermal
Station (gas
fired)
Thermal
Station (gas
fired)
Source: PHCN
INFORMATION AND COMMUNICATIONS TECHNOLOGY
(ICT)
SECTOR
Government intends to create incentives to expand access to
information and communication technology, which will
facilitate accelerated development of the sector in order to
short-circuit the longer span of development.
Government is encouraging local production of ICT
equipment and materials (computers, telephones, televisions
etc). Government also intends to encourage the
development of payment systems, which will facilitate the
growth of electronic commerce.
The Act setting up the Nigerian Communication Commission
(NCC) and the National Telecommunication Policy approved
in October 1999 set the strategies and guidelines for the
modernisation,
expansion
and
improvement
of
telecommunication network and services so that the
industry's impact and the contribution to national
development would be enhanced. This has to do with
designing and implementing network development
projects that would yield a minimum of 2 million lines
by the year 2005.
With the deregulation of the industry, NITEL PLC and M-TEL
which are Government-owned, are being privatised to create
a level- playing ground for the services providers and
thereby ensuring the attainment of Government policy
objectives.
With the liberalisation of the sector, comes the need for
adequate regulation. The NCC was therefore established to
promote and regulate operations within the sector. Since the
auctioning of license for Global Mobile Communications
System in 2001, the sector had witnessed tremendous
growth both in number of service providers and subscribers.
The table below detailed the progressive growth the sector
had achieved.
SERVICE
CATEGORY
National
Carriers
Mobile (GSM)
Telephony
Fixed
Telephone
Vsat Network
Internet
Services
NUMBER OF OPERATIONS & SERVICE PROVIDERS
1999
2000
2001
2002
2003
2004
1
1
1
2
2
2
Mar.
2005
2
1
1
3
3
4
4
4
9
16
16
17
20**
24**
24**
N/A
18
N/A
30
N/A
30
N/A
35
51
35
52*
35*
52*
35*
GROWTH IN FIXED AND MOBILE TELEPHONE LINES AND
TELEDENSITY
Fixed:
NITEL
PTOs
450,17 497,0 540,6 555,46 555,46 524,59 525,000
2
19
62
6
6
6
***
23,144 56,35 59,65 146,53 333,06 515,17 568,925
5
9
4
8
3
****
Sub-Total
473,31 553,3 600,3 702,00 888,53 1,039, 1,093,9
6
74
21
0
4
769
25
Mobile
35,000 35,00 266,4 1,569, 3,149, 8,500, 9,950,0
0
61
050
472
000
00
Total
508,31 588,3 866,7 2,271, 4,038, 9,539, 11,043,
6
74
82
050
006
769
925
Teledensity
0.42
0.49
0.72
1.89
3.36
7.77
9.2
GROWTH OF TELECOM INVESTMENTS IN NIGERIA
1999
2000 2001 2002
Jun
Dec
Sept.
2003
2003
2004
Amount
In 50
150
1200 2100
2550
4000
6080
US$’Million
* Confirmed, ** Include 3 fixed wireless access (FWA) operators, ***
Estimates, **** Includes estimates for some companies
PTOs: Private Telephone Operators